Triple Play on China

NoLoad Fund*X, which consistently
sports the top performing ranking among mutual fund newsletters, follows a
system called upgrading, in which it shifts its holdings based on fund
performance over the previous one, three, six, and 12 month periods.Its current top
rated funds invest in China.

“Two highly ranked Chinese funds
are new to our list – Matthews China (MCHFX) and Investec China/Hong
Kong (ICHKX). ‘China is a huge country with huge potential,’ says Investec’s
Tim Guinness. Until recently, his fund had to keep 55% of assets in companies in
Hong Kong, but this restriction is now lifted, allowing full exposure to
mainland China stocks. The fund expects to reduce its Hong Kong holdings, and
shift to China where it believes the best opportunities are.Meanwhile, Matthews China is one of the
oldest China funds, and the firm prides itself on being Asian specialists.
Manager G. Paul Matthews has been investing in Asia for the last 20 years and he
now believes China is the economic growth engine for all of Asia.”

Roger
Conrad, among the leading authorities on
utility companies, also sees opportunity in the China region.In his latest The Utility
Forecaster ,
the advisor says, “China’s robust economy and stock market stand in marked
contrast to the rest of the world in 2003.And with the country passing Japan in exports to the US, last year, it
should just keep getting stronger. That spells explosive demand for electricity.
CLP Holdings (CLPHY NASDAQ) is my favorite China power play for several
reasons. First, it runs Hong Kong’s largest electric monopoly, with a guaranteed
franchise through 2008. Regulators have set a guaranteed return of 13.5% to 15%
on all equity investments, locking in annual cash flow growth of about 10% as
utility capital spending continues to wind down. Meanwhile, CLP has used its
cash hoard to hold debt to just 16% of equity, boost dividends, and expand its
reach abroad, with a major focus on power plant projects in mainland China.
Management plans several ventures including China’s biggest wind plant. If
successful, the China ventures could easily double the firm’s overall growth in
the coming years. And if not, the firm’s steady base and strong finances will
keep it pumping out steady returns. CLP is a great aggressive total return play
up to $5.”

Elliott
Gue, editor of Wall Street Winners , remain
bearish on the overall market, yet sees an opportunity in China.“CNOOC (CEO NYSE) has been our
favorite long-term play on China. Indeed, today, it is one of the few real
growth stories in the energy industry.We believe 15% production growth per year is feasible, with superior
operating and financial visibility. CNOOC is the only Chinese company allowed to
conduct offshore drilling for gas and oil. It has a lean cost structure and is
undertaking the largest offshore exploration project in China’s history.It has the unconditional support of the
government, and an array of good partnerships such as Royal Dutch Shell and BP.
But the company itself is only half the story. The rest is the potential of the
Chinese economy and the intense search for growth by the super oil companies.
CNOOC is sitting in the middle of all of this.”